Powered by MOMENTUM MEDIA
subscribe to our newsletter

Industry divided on convergence: poll

Only 29 per cent of Mortgage Business readers believe mortgage brokers can also be financial planners.

The remaining 71 per cent of the 457 readers polled do not believe brokers can also provide financial advice.

The findings come at a time when an increasing number of mortgage groups and financial planning businesses are converging as the industry looks to capitalise on the benefits of diversification.

While some brokers are also financial advisers, the majority of broker groups that have diversified into financial planning keep each business separate.

Speaking to Mortgage Business, Astute Financial director Brad Wood said that while his multi-service company provides both mortgage broking and financial advice, both businesses operate independently.

Advertisement
Advertisement

“They have their own management structures and they have their own cost centres,” Mr Wood said.

“What we are looking to create is the opportunity for clients to have a one-stop shop where they can come in and talk about their mortgage with a professional mortgage broker,” he said.

“They can talk about their requirements in equipment finance or commercial lending with an experienced and qualified equipment finance or commercial lending broker.

“If they want to talk about insurance or wealth creation, those are completely separate disciplines that require different skill sets and different training and understanding.”

Mr Wood has been quick to point out that Astute is not a business where customers visit a broker who can also provide them with insurance and wealth advice.

PROMOTED CONTENT


“I don’t think you can be an expert in everything,” he said.

“You need to specialise in a certain area but then have access and availability to refer to other professionals in other disciplines to make sure your clients are getting the same level of professionalism that you are providing in your discipline.”

Yellow Brick Road chief executive Matt Lawler told Mortgage Business last month that mortgage broking is a ‘sub-segment’ of financial planning, sparking a reaction from a national brokerage.

Mortgage Choice chief executive Michael Russell dismissed the idea.

Astute’s Mr Wood said there is “no way” that someone who specialises in mortgages has got time to devote to a discipline like planning.

“How can you do both to the best of your ability?” he said. “It doesn’t work.”

 

Industry divided on convergence: poll
mortgagebusiness

Latest News

The RBA has studied the role of collateral in credit markets under stress, and has found that collateralised borrowing rose for some segment...

Auction volumes surged significantly over the December quarter across Australia, largely attributed to a “resurgence” in Melbourne, acco...

Loan conditions and collateral guarantees continue to be major stumbling blocks for small businesses looking to access financing, according ...

FROM THE WEB

Join a group of highly informed brokers.

Broker Pulse, a community-driven knowledge base of lender performance Reveal exactly which lenders are making life easiest for brokers and their clients by taking this monthly survey and joining a group of highly informed brokers who leverage these insights every month.

JOIN NOW
podcast

LATEST PODCAST: A new record in mortgage approvals

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.